With the deep analysis of the above alternatives, it is recommended that the business must choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only introduce brand-new and innovative items in the market it would also lower the high expenditures on R&D under alternative 2 and increase the profit margins. It would enable the company to increase its share costs also, as investors want to invest more in business with significant R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Method can be executed successfully by establishing particular short term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Road Well Traveled Condensed should carry out numerous activities to implement its NHW method effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brand names, which generate most of its earnings.
• Evaluate the present target audience in addition to the marketplace sector which is not include in the business's circle.
• Evaluate the existing financial data to determine the amount that should be invested in the R&D and acquisitions.
• Examine the possible investors and their nature, i.e. do they want long term advantages (capital gain), or the desire early profits (dividend). It would let the business to understand that just how much amount ought to be invested in R&D.
Mid Term Plan (1-5 years)
• Acquire those organizations in which the company has possible experience to deal with. Acquire most favorable organizations with a strong commitment to health, to develop the consumer's perceptions in the ideal instructions.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Road Well Traveled Condensed worths and vision and to avoid prospective risk of sunk cost.
Long Term Plan (1-10 years)
• Obtain organizations with health in addition to taste element, as the base for the Road Well Traveled Condensed as a company producing healthy items has actually been developed under midterm plan and now the business could move towards taste factor too to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to construct new products.